Analysis about the Black-Scholes asset price under the regime-switching framework

Assuming that the macroeconomic environment can be transformed into a two-district system, that is, the path of financial asset prices is uncertain, we track and study the motion of stocks and other asset price process under the conditional Black-Scholes model, and give the economical explanation of the mathematical formula. Further, we derive and analyze an option pricing formula for the Black-Scholes asset model under the condition that the risk-free interest rate is regime-switching too. The method in this article is applied to model the log rate of return of the Tencent stock in a two-district market environment. And the obtained parameter values are used to calculate the option price. In narrowing the gap with actual option prices, our method outperforms the classical option pricing model point by point. Compared with the general and pure mathematical model derived work and the empirical study work, our study does more work on the economic characteristics analysis and interpretation of the mathematical models, and plays a certain role in linking the results of mathematical models with empirical research.     

The influence of anthropomorphic appearance of artificial intelligence products on consumer behavior and brand evaluation under different product types

While artificial intelligence products are widely used in the market, their anthropomorphic appearance design is becoming a frontier issue in product strategy and consumer behavior research. The aim of this study was to investigate the influence of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. It was conducted in China, a new but rapidly-growing country in the field of Internet, AI technology and AI product consumption. This study conducted four situational experiments with a 2 (anthropomorphic design: anthropomorphic vs. non-anthropomorphic) × 2 (product type: hedonic vs. utilitarian) between subjects’ experimental design. Data was collected from 1172 Chinese “Digital Natives” by using a structured questionnaire. The findings revealed that for hedonic AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived entertainment, and intelligence level significantly moderates the mediating effect of perceived entertainment; while for practical AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived usefulness, and intelligence level does not significantly moderate the mediating effect of perceived usefulness. There is no significant moderating effect of intelligence level on perceived usefulness. The study contributes to development and validation of a more comprehensive understanding and theoretical foundation of anthropomorphism, and furthermore explores the impact of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. This study also provides insights for companies to apply anthropomorphic strategies.     

Forecasting stock market volatility with various geopolitical risks categories: New evidence from machine learning models

This paper investigates how geopolitical risks influence the prediction performance on the US stock market volatility with machine learning models. Further, it compares the predictive performance of individual and combination forecast methods. With SHAP algorithm, it could identify which factor has a great impact and fully extract the information of geopolitical risks in predicting. Empirical results show that military build-ups and escalation of war have great importance on predicting realized volatility among various geopolitical risks. The research further emphasizes the superior performance of machine learning and forecast combination methods, especially SVR method and trimmed mean combination. In addition, by allocating portfolio according to the machine learning-based volatility forecasts, particularly elastic net and random forest, a mean-variance investor can achieve sizeable financial benefits. Our paper provides substantial implications for political risk management and volatility forecasting.     

Can craft beverages shape a destination’s image? A cognitive intervention to measure pisco-related resources on conative image

Assessing potential tourists' perceptions is vital to build a destination image and brand capable to attract new and repeated visitors. The increasing popularity of craft beverage tourism in recent years is incentivizing destinations to (re)design their offerings and (re)brand their image based on their craft beverages. This study investigated how the image of an emerging craft beverage tourism destination (Ica, Peru) is formed among potential tourists by inducing cognitive image (knowledge presented through picture-text dyads) of Ica's iconic resources, staple craft beverage (pisco), and resources associated with its production. Additionally, it measured the impact of local resources' characteristics, affective image, and personal characteristics on conative image (interest to visit and willingness to recommend) at different intervention stages. Results indicate that pisco-related resources are powerful enough to motivate travel, and that the characteristics of a mix of resources should be combined with beverage-specific information when developing branding strategies for craft beverage tourism destinations.     

Advertisement policy for dual-channel within emissions-controlled flexible production system

Nowadays, industrial firms are very much careful to build a green environment by reducing carbon emissions. The government imposes some rules and regulations to provide a better eco-friendly environment. In this study, the cap-and-trade mechanism has been considered in a production model to control the carbon emissions rate. The manufacturers invest in advanced green technology to reduce per unit emissions. As online and offline selling is crucial to any industry for increasing customer demand, the manufacturers sell their products by dual-channel and advertise their products by online channel to make more popular of their products. Keeping these in mind, a sustainable flexible production model with single-type substitutable product production is considered here by imposing a cap-and-tax policy, investing in green technology, and advertising for products. This model is divided into two cases: with and without investment in green technology. The demand of each manufacturer depends upon an online selling price, an offline selling price, and an online advertisement of the product. A classical optimization technique helps to get the optimum strategies for the online selling price, offline selling price, advertisement investment, green technology, cycle time, and production rate. From the numerical study, it is proved that the industry gets 6.97% more profit in the case of green technology investment and the proposed study gives 5.74% more profit than the traditional production system. Sensitivity analysis and managerial insights are performed.     

Aesthetics of hotel photos and its impact on consumer engagement: A computer vision approach

Visual content has been an essential marketing approach to exerting enjoyable virtual experiences and inducing consumer engagement. However, despite the widespread acknowledgment of the importance of visual content, how would the exerted aesthetic perception affect consumer engagement is still unexplored. Adopting a deep convolutional neural network model, this study quantifies the aesthetics of thumbnail images and managerial photos of hotels and thereby explores the impact of hotel photo aesthetics on consumer engagement. Aesthetically enjoyable photos are shown effective not only to encourage more consumers to engage in word-of-mouth discussions but also to promote consumer ratings. Such impact is also significantly moderated by hotel price. This study illustrates a viable approach to probing the perceived aesthetics of visual content in the hospitality field, and the uncovered significant role of aesthetics highlights the necessity of further attention to the cognitive perceptions of visual marketing content in both theoretical research and practical management.     

Mitigating panic buying behavior in the epidemic: An evolutionary game perspective

The panic buying behavior under public health emergencies will lead to many adverse consequences, such as material waste, price fluctuation and uneven distribution of epidemic prevention materials, which will pose a threat to the social stability and economic development. In this paper, we construct a tripartite game model to explore the strategic choices of the public, merchants and the government in order to effectively respond to the panic buying behavior in the epidemic. The results demonstrate that: (1) Eight evolutionary stable strategies emerge in the panic buying events. The worst scenario can be improved by adjusting some relevant parameters. (2) The probability of the public choosing the strategy of “not involving in panic buying” depends on the potential benefits and losses of snapping up, rather than the extent of price rising. (3) The probability of merchants choosing the strategy of “not bid up price” depends on the intangible benefits. (4) The probability of the government choosing the strategy of “active supervision” depends on the supervision costs and government credibility, rather than the amount of fines. In addition, strategic suggestions to mitigate panic buying behavior are put forward from the perspective of each stakeholder.     

Exploring the influence of tourists’ happiness on revisit intention in the context of Traditional Chinese Medicine cultural tourism

Based on how tourists interpret the destination experience and on attachment theory, this study investigates the influencing mechanism of tourists' happiness on revisit intention for traditional Chinese medicine (TCM) cultural tourism destinations. Three tourist samples confirm the three dimensions of tourists' happiness: positive emotions, engagement, and meaning. Two surveys were conducted to test the direct and indirect influence of tourists' happiness on revisit intention and the moderating role of tourists' health consciousness. The results show that tourists' happiness promotes memorable tourism experience and place attachment, in turn stimulating revisit intention. The results also support health consciousness as a significant moderator between happiness, place attachment, and revisit intention. The findings enrich theoretical understanding of tourists’ happiness and provide marketing and management advice for TCM cultural tourism destinations.     

Toward a new business model of retail industry: The role of brand experience and brand authenticity

While the customer-to-manufacturer (C2M) business model has received increasing attention as a new business model for e-commerce and retail industry, little is still known about it and the effect of its approach. This study aims to understand how brand-related stimuli in C2M environments affect customer responses as the worldwide COVID-19 pandemic. The outcomes reveal that the Sensory, affective, and intellectual aspects of brand experience positively influence brand authenticity. Brand authenticity has a positive effect on behavioral intention, such as reuse intention and word-of-mouth. Additionally, this research finds that social presence moderates the association between the sensory aspect of brand experience. Thus, this study can suggest a C2M business model as a means of sustainable operation of the retail industry to both researchers and practitioners in relation to the retail industry.     

The role of socially rich photos in generating favorable donation behavior on charity websites

While online retail sites succeed in reinforcing perceptions of human warmth on their websites thanks to more and more interactive technologies, the charitable sector cannot, for lack of human, technical and financial resources, make use of such technologies. This research paper demonstrates the potential of a simple tool: the socially rich photo. Although the literature has extensively documented how photos impact visitor behavior in online environments, research in the context of donations through charity websites is rare and has provided contradictory results. By focusing more closely on the role of the individual represented in such photos (the recipient of a donation versus the donor), our studies, conducted in France, offer additional insights on the subject as well as managerial advice for organizations.